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Self Certified Mortgages

Many people have problems proving their full income. This may be because you are paid commissions, have more then one job, have investment income or maybe your income is derived abroad.

If you are self employed you can have particular problems proving your income either because you do not have enough years accounts or maybe you have used all the legal methods available to minimise your tax liability.

Types of Self Certified Schemes

Self cert schemes can be grouped into three types:

  • Fast-track
  • Minimal Checks Made
  • True Self Cert

Fast-Track

Some lenders offer the option of not asking for proof of income as a way of speeding up the application process.

Generally they will allow this if there is a large enough deposit, normally at in the reqion of 25% deposit.

While in most cases the lender will make no checks, they do though reserve the right to check your income if they wish. You are expected to be able to prove your income if you are asked to.

Minimal Checks Made

In these cases you state your income and the lender will take the figure on trust. They will though contact your accountant or employer or they may want to see your self-assessment forms (with the figures blanked out) in order to check that you have been in self employement or in your current employment for the particular lenders minimum required period.

Sometimes lenders will ask your accountant or mortgage broker to confirm that they think you can afford the loan.

True Self Cert

There are some schemes available where the lender will not make any checks on your income or employment.

These schemes can be particularly useful if you do not have an accountant or if your income is derived from a number of employments or other sources.

Ability to Make Repayments

Whichever self-cert method you choose, you must always remember that you are responsible for making the payments on your mortgage.

Remember interest rates are very low at the moment and will rise! So you should always be comfortable that you will be able to still make the repayments if they were to rise.

You can use our What if Interest Rates Change Calculator to seee the effect of rises in interest rates.

If you fail to make repayments on your mortgage your property could be repossessed.

Maximum Loan to Value: 75%

Because the lender is taking a higher risk in lending to you without confirming your income, the maximum loan to value for self cert mortgages is %

Getting Help

If you are looking for a self certified mortgage you should get a mortgage adviser to help you with your application. They could have special deals that are not available direct and they should be able to ensure your application goes through smoothly.

You should talk to two, three or more brokers. See what deals they offer you and ask them how much experience they have in dealing with cases like yours.

Complete our online enquiry form to get help from a broker.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

FaqMyMortgage.co.uk is not a regulated firm. The information and tools on this site are for general information and background only. No part of this site should be construed as 'personal information' or 'advice' as defined by the Financial Services Authority (FSA). Any opinions expressed are the personal opinions of the writer only. You should seek professional advice to confirm that any suggestions or opinions apply in your personal circumstances.

Whilst every effort has been made to try to ensure the accuracy of information on this site, I cannot guarantee that it is all accurate or up-to-date. You should ensure that you confirm any information that you will rely on with the appropriate lenders or a mortgage adviser. Always obtain a Key Facts Illustration if you wish to compare mortgages or if you wish to apply for one.

If you would like any personal information or advice on your particular circumstance then you should speak to an FSA Regulated Mortgage Adviser